HNB Group PBT in Q1 2015 tops Rs 3b

Hatton National Bank PLC continued its growth momentum with Group PBT increasing by 92% to Rs 3 billion and Group PAT increasing by 79% to Rs 2 billion in Q1, 2015.

Managing Director and CEO, HNB, Jonathan Alles said, "We are pleased with the robust growth recorded during the first quarter of 2015 amidst volatile market conditions.

This strong overall performance, amply demonstrates the clear strategic focus of the Bank, delivering sustainable value to all stakeholders."

"Our efforts on driving sales through dedicated teams, continuously improving process efficiency and innovations in digital banking have enabled the Bank to record superior performance," he said.

The loan book grew by over Rs 12 billion during the first three months of 2015 with net loans and advances recording a growth of 13% YoY, despite a slowdown in overall demand for credit compared to what was witnessed during the latter part of 2014.

This loan book expansion was funded through the deposit growth of over Rs 16.5 billion during the first quarter.

The Bank's focus and efforts on mobilising low cost deposits despite intense competition within the industry enabled the Bank to record a YoY growth of 29% in the rupee CASA base with the CASA ratio improving to 47%.

The landmark long term loan facility of USD 100 million obtained recently from ADB, will further supplement deposit growth during the year, and would assist in funding infrastructure development in the country, boosting economic growth.

Interest income of the Bank reduced by 11% on account of the drop in interest rates while interest expenses dropped at a faster pace due to the same and the shift towards low cost deposits as mentioned above. This enabled the Bank to cushion the impact on interest margins from the drop in interest rates.

HNB's continued focus on growing fee and commission income from multiple sources resulted in the net fee and commission income improving by 11% to Rs 1.3 billion during Q1, 2015.

The growth was mainly through, trade facilities, remittances and increased credit card volumes.

The profit before tax of the Bank improved to Rs 2.7 billion while the profit after tax for the Bank grew to Rs 1.8 billion.